The Financial Services Commission and the insurance industry have taken a decision to return over KRW10tn ($6.5bn) in hidden insurance benefits to policyholders or beneficiaries this year, reported the Chosun Daily.
Hidden insurance benefits refer to funds that have not been claimed despite the payment amount being finalised. These often occur when consumers are unaware of the benefits, such as unclaimed retirement pension reserves after a business closure or expired insurance contracts.
In 2025, an amount of KRW3.247tn of 800,000 cases were returned to consumers, with the average amount per case amounting to KRW4.04m. Government records revealed that only about 30% of hidden insurance benefits are reclaimed annually.
This year, the total hidden insurance benefits amount to KRW10.3tn, of which KRW1.8992tn consists of interim insurance benefits paid upon meeting specific conditions, such as congratulatory funds for childbirth or school enrolment, educational funds, or medical examination funds provided upon reaching a certain age. Additionally, KRW1.1394tn remains in maturity insurance benefits, which can be claimed within three years after the contract expires.
Unclaimed death insurance benefits, where beneficiaries were unaware of the policyholder’s death, amount to KRW61.9bn. Interim and maturity insurance benefits accrue interest for up to three years after the contract expires. On the other hand, dormant insurance benefits held by insurers or the Korea Inclusive Finance Agency beyond the three-year period do not earn interest and must be claimed immediately.